Aroon Oscillator (ARO)

The Aroon Oscillator is a derivative of the Aroon indicator that provides a different way to view the results. It is constructed by subtracting Aroon Down from Aroon Up. The Aroon Oscillator oscillates between -100 and +100 with zero as the center line.

The Aroon Oscillator provides the following signals:

• Above zero signals an uptrend.
• Below zero indicates a downtrend.

Configuration Options

• Field: Price or combination of prices to use as the base for average calculations. Possible values include:
  • Open
  • High
  • Low
  • Close
  • Adjusted Close
  • HL/2 \( \left ( \frac{High + Low}{2} \right ) \)
  • HLC/3 \( \left ( \frac{High + Low + Close}{3} \right ) \)
  • HLCC/4 \( \left ( \frac{High + Low + Close + Close}{4} \right ) \)
  • OHLC/4 \( \left ( \frac{Open + High + Low + Close}{4} \right ) \)
• Color Selectors: Colors to use for graph elements.
• Display Axis Label: Whether to display the most recent value on the Y axis.

Formula

\[Aroon\;Osc = Aroon\;Up - Aroon\;Down\]

The formula uses the following equations, where n is the number of days:

\[ Aroon\;Up = \frac{100 * (n - (Days\;Since\;n-day\;High))}{n} \]

\[ Aroon\;Down = \frac{100 * (n - (Days\;Since\;n-day\;Low))}{n} \]